You can't pay your suppliers this month. Here's what to do.

The moment you realise the money is not there

If you're struggling to pay bills, relying on credit or delaying supplier payments, it could mean your cash flow is under pressure. The invoices sit on your desk, the due dates are approaching, and the bank balance tells you there is a problem. The temptation is to stay quiet and hope the next payment from a customer arrives in time.

Silence makes the situation worse. Make sure there are good controls in place so your suppliers aren't paid early or over paid. When suppliers hear nothing, they assume you are avoiding them or about to disappear. That assumption ends patience and moves them toward formal recovery. The alternative is to call them first, explain the position honestly, and propose a realistic plan.

List your suppliers by how critical they are to your jobs

Not all suppliers matter equally to your operations. Sit down with your supplier list, outstanding invoices and current job schedule. Identify which suppliers you rely on for materials, equipment hire or services that keep your jobs running. Separate those from suppliers you use occasionally or who can be replaced quickly.

Write down what you owe each critical supplier, when the payment is due, and what work you need from them in the coming weeks. This list tells you who must be contacted first and where you have flexibility. It also shows which debts, if unpaid, will stop work immediately and which can be deferred without halting operations.

Source: Official guidance

Call your top three suppliers today with a realistic plan

Contact your three most critical suppliers before the invoice due date passes. Make sure you communicate with your suppliers at all times, especially if you're going to pay outside of your agreed payment terms. Often the supplier isn't aware there's a problem so contact them to discuss the issue first. Speak to the person who makes payment decisions, not a general accounts inbox.

Explain your cash position clearly and propose a specific payment arrangement: a reduced amount now with the balance in stages, a short extension of the due date, or smaller weekly payments over an agreed period. Take notes of the conversation and try to negotiate an agreement. Your agreement should include a suitable time frame to resolve the situation. Once you come to an agreement with your supplier, follow up with a written letter or email outlining everything that you've agreed and make sure you and your supplier sign the document as agreed.

Pay small, critical accounts first

If you have enough cash to clear some debts but not all of them, prioritise small amounts owed to critical suppliers. Clearing a small account completely preserves the relationship and keeps that supplier willing to work with you. Partial payments across many accounts may leave everyone dissatisfied and unwilling to supply further materials or services.

Owing other businesses and the tax office money is one of the first signs your business does not have a strong cash flow. Manage your cash flow by completing a cash flow forecast statement to make sure you have money to pay your suppliers on time. Focus available cash on accounts that, once paid, restore supply relationships and allow you to continue operating while you manage the larger debts through negotiated arrangements.

Put every agreement in writing and get help if you need it

Verbal agreements protect neither party. After every conversation, send a written confirmation of what was discussed: the outstanding amount, the revised payment date or instalment schedule, and any conditions agreed. Ask the supplier to confirm in writing or reply to acknowledge the arrangement. This record prevents misunderstandings and demonstrates that you are managing the situation professionally.

If you are dealing with multiple creditors, tax debts, or cash flow pressure that recurs every few weeks, the problem is structural and requires professional advice. CRP coordinates independent qualified professionals who can assess your position, explain your options, and help you develop a realistic creditor management plan. Use the contact form below to explain your situation. Bring your supplier list, outstanding invoices, current cash position and any correspondence about payment. Early contact with suppliers keeps supply going. Early advice about the business position keeps more options open.